WORLD TRADE  
ORGANIZATION  G/SG/Q2/ZAF/2 
17 June 2008 
 (08-2825) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT 
ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, OF  
THE AGREEMENT ON SAFEGUARDS 
 
Replies to Questions Posed by BRAZIL
1 
Regarding Notifications of SOUTH AFRICA2 
 
(Lysine ) 
  
 The following communication, dated 12 June 2008,  is being circulated at the request of the 
Delegation of South Africa.    
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Question 
 
 Would the delegation of South Africa plea se clarify how the causal link was established 
between Brazilian exports of lysine and the a lleged serious injury or threat thereof on the 
South African domestic industry in view of the disciplines in Article 4.2.(a) and (b) of the WTO 
Safeguards Agreement, in particular the evaluati on of "other factors which could have been 
causing injury to the domestic industry" and rel evant factors of an objective and quantifiable 
nature such as "the rate and amount of the increase in imports of the product concerned in 
absolute and relative terms" and "the share of the domestic market taken by increased 
imports"?   
 
 With reference to the questions posed by Brazil regarding the safeguards notification by 
South Africa, South Africa wishes to respond as follows:  
Response to Brazilian question on safeguard causal link 
 
 Having received the question from Brazil regardi ng the notification under Article 12.1(B) of 
the Agreement on Safeguards on finding a serious injury or threat ther eof caused by increased 
imports, the South African authority hereby provides its response. 
                                                     
 
1 G/SG/Q2/ZAF/1 
2 G/SG/N/8/ZAF/1/Suppl. 2 - G/SG/N/10/ZAF/1/Suppl.1 - G/SG/N/11/ZAF/1/Suppl.2.   G/SG/Q2/ZAF/2 
Page 2  
 
   
 The International Trade Administration Commission of South Africa ("the Commission") assessed the causal link between the total imports of the subject product and the serious injury and threat of serious injury.  Therefore, the impor ts from all countries were cumulatively assessed in 
determining the causal link. 
 
The rate and volume of the increase in import volumes
 
  The following table shows the volume of the imports from 2002 to 2006.  
Import volumes in kg. 2002 2003 2004 2005 2006 
Total imports 422 622 1 167 335 1 668 927 2 127 080 4 261 108 
 
 The information in the table indicates that the import volumes increased significantly from 
2005 to 2006 by 100 per cent.   The following table shows the import vol umes relative to domestic production: 
 
 2002 2003 2004 2005 2006 
Imports as a % of South 
Africa's output 100 227 302 500 1 741 
This table was indexed due to confidentiality using 2002 as the base year. 
 
 The information in the table indicates that the imports as a percentage of the SACU industry's 
output increased significantly from 100 basis points in 2002 to 1 741 basis point in 2006.  
 Based on this information and as indicated in its  final report, the Commission decided that the 
subject product was being imported in significantly increased quantities, both in absolute terms and relative to domestic production.  Market share taken by the increased imports
 
 
 The following table shows the mark et share for the subject product: 
 
Percentage share held by: 2002 2003 2004 2005 2006 
SACU production sales 100 91 81 78 56 
Imports 100 224 364 410 718 
SACU market 100 109 96 109 124 
 
 The information in the table indicates that  the SACU production's market share decreased 
significantly from 2002 to 2006, with a corresponding increase in imports.  From the information in the table it is clear that the loss in market shar e of the South African produced product was taken by 
the imports of the subject product.  
 In terms of Article 2.2 of the Safeguards Ag reement a measure is applied to a product being 
imported irrespective of its source.   G/SG/Q2/ZAF/2 
 Page 3 
 
 
  Other factors considered by the Commission, whic h could have been causing injury to the domestic 
industry  
  The Commission considered relevant factors other than the increase in imports which could 
be causing serious injury, such as the productivity of the Applicant, developments in technology, 
views of the Applicant's clients, the attitude of the Applicant's workforce and the Applicant's export 
performance, and decided that these did not detract from the causal link.   
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